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HOW ARE T1 PRICES CALCULATED?

Every telecommunications carrier has a slightly different method of pricing a T1. Nonetheless, two variables play a major role in any T1 price calculation; Local Loop and Port.

The Local Loop is essentially the wiring segment transporting electrical signals (data) which exists between the T1 carrier's market point of presence (POP) and the local exchange carrier's (LEC) central office (CO) facility. The greater the physical distance between the POP and CO, the greater the cost of maintaining the Local Loop, resulting in a higher retail price for the T1 connection. Conversely, shorter distances between a POP and CO result in a relatively lower cost for the Local Loop. Port charges are costs associated with physical equipment ports within a carrier's network to access the requested internet and / or public telephone system network (PSTN) resources.